What to eye post Brexit
Investors should review their UK and European investments and possibly consider emerging markets and gold as an investment opportunity, according to industry experts.
BetaShares chief economist, David Bassanese, said as Brexit raised risks with UK and European investments, emerging markets could gain some attractiveness on a relative basis.
However, in light of Brexit, Bassanese said he preferred defensive high income investment opportunities in developed markets.
"Gold is likely to be the major beneficiary of coordinated monetary easing," he said.
Montgomery Investment Management founder, Roger Montgomery, warned that professional managed pension and super funds were investing in bonds with very low returns for extremely long periods.
Montgomery said events such as Brexit had caused a stampede toward security, and that had driven bond prices even higher and yields much lower.
"Investors are laying the groundwork for the next collapse in the value of their retirement savings," Montgomery warned.
Baby boomers were chasing high yielding blue-chip shares on an expensive Australian stock market, and low yielding bonds, he said.
"[They] are likely to suffer another destructive setback to their wealth and purchasing power before their days are up," Montgomery said.
But that may be one, two or three years away, Montgomery said.
Recommended for you
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.
One of Metrics’ four managing partners is to step back from the business next year, having worked at the firm since its inception in 2011.
VanEck’s Bitcoin ETF has amassed $290 million in assets in its first year, but the ETF provider has said financial advisers remain skeptical of the asset.
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
